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Microsoft has publicly admited they entered the videogaming industry because they projected that the next generation of Playstation(PS3) would become the main standar for internet gaming and they saw that market as with a lot of potential to make money and wanted to reserve it for themselves .Thats why they introuduced the Xbox and pushed so hard the internet from the word go ,they wanted to have some of the pie for themselves and from then on erode PS market share and eventually reserve the online antics for themselves ,maybe even connecting it with PC online gaming and turning from all that the best profit possible .Once in the market they probably saw more positive things ,as the royalties ,the licensing of its XNA and DIrectX etc ....in few words making everybody pay them for everything .They will put as much cash as neccesary to obtain a predominant position in this industry ,and if they can to reproduce the monopoly they have in the computers world .